Lee Hawksley, President, Asia Pacific and Japan, UiPath

Australia’s manufacturing industry is a key pillar of economic growth and innovation for the nation, and at the forefront of Industry 5.0.  While technologies such as the Internet of Things (IoT) and 5G dominated Industry 4.0, the next industrial revolution is focused more on how humans and technology will work together to deliver broader societal benefits. 

According to McKinsey, automation and AI technologies present an enormous opportunity for national and personal income growth and could add up to $4 trillion to Australia’s economy. This substantial impact is driving the manufacturing industry to seize new opportunities with automation tools to reduce labour costs, achieve high levels of productivity, and with today’s context, help them comply with new regulatory obligations that include creating a more sustainable approach to manufacturing.

Understanding going green 

The manufacturing industry is a leading consumer of natural resources and a significant contributor to greenhouse gas emissions. While modern industrial practices have allowed manufacturers to improve efficiencies in how they produce and deliver products to market, many current processes still heavily rely on resources that impact the environment.

This is why state and federal government agencies are now investing in green manufacturing, which goes beyond compliance and being environmentally responsible to a whole new approach to manufacturing that aims to preserve the environment while, at the same time, delivering significant benefits to manufacturers in the form of cost savings, improved operational efficiencies, and enhanced brand reputation.

By adopting green manufacturing practices, manufacturers can contribute to environmental conservation efforts while improving their bottom line.

How AI-powered automation supports a greener future 

As society focuses its efforts on a greener future, automation is emerging as an invaluable tool in achieving sustainability goals. Some examples of how automation enables green manufacturing include:

• ESG reporting 

Manufacturers are among Australian organisations that must report under new Environmental, Social and Governance (ESG) standards from early 2025. Using time intensive, manual processes to compile ESG data will not only prove costly but will likely result in non-compliance.

AI-powered automation tools, such as the UiPath Business Automation Platform, can automate ESG reporting by gathering and analysing ESG-related data across a manufacturer’s supply chain in near real time. Through automation, manufacturers can gain clearer insights into their ESG footprint and where to focus on areas for improvement. This enables accurate, compliant ESG reporting and helps promote a best practice approach to green manufacturing.

One such company putting this into action is one of the world’s largest furniture retailers. To achieve its goal of reducing greenhouse gas emissions by 80% by 2030, the company has set requirements for the responsible adoption of robotics for automation and ethical handling of data and digital technologies.

• Enabling a circular economy 

Automation plays a significant role in driving a circular economy by improving the efficiency and sustainability of manufacturing processes. For example, AI-powered automation can help manufacturers significantly reduce material waste by driving processes with a higher degree of precision, while also supporting processes that optimise reuse and recycling efforts.

In another example, a leading multinational automotive manufacturer is promoting a circular economy. The company reports that 36% of the total mass of a newly produced vehicle comes from recycled materials. By reusing parts from older vehicles to provide cost efficient repair options to customers and by remanufacturing parts, the company saves 80% of energy, water and chemical products. 

Green manufacturing, and the benefits that come with it, are easily achievable with AI-powered automation, which forms the foundation of Industry 5.0.

Through using automation to streamline operations, improve efficiencies, respond to disruptions, and drive sustainable outcomes, Australian manufacturers can accelerate their sustainability journey and pave the way for greener business practices for the future.